Opinions on Providence Resources

TakeMyNameDown

Relatively new to this share-trading lark and just wondered what folks thought about a flutter on Providence Resources. They currently own the rights to 16% of the Dunquinn bank off the Kerry coast which is a potentially huge windfall of gas and oil. Exxon Mobile who own 80% of the rights must make an announcement before August 14th on whether or not they are going to do an explatory drill. The signs seem to be good that the announcement will be positive.

Whats the price of them at the moment? I bought a load of them 10years ago at 1.5 cents and gave up waiting for them to move...

stevedublin

Deleted User wrote: »

Whats the price of them at the moment? I bought a load of them 10years ago at 1.5 cents and gave up waiting for them to move...

They are about 10.5 cents these days, they've gone up sevenfold! It looks like they'll continue to rise a lot more as they have lots of interesting projects offshore Ireland, the Gulf of Mexico and elsewhere - see www.providenceresources.com

dunkamania

Interesting projects doesnt mean a huge amount.

Statistically about one in twelve of drilled wells is considered successful.

Anything you have read, the market has already priced in

I_Love_Tomatoes

At 10.5 cents, it's a tough call. I got a batch of them at 5.7, then another at around 11 I think when they spiked last year after positive news. I'm holding them because I reckon they can do something. Finally, this year looks like the most promising. It could be 2009 before I see any material return.

I don't think you're going to see them hit a euro any time soon if that's what you're thinking.

Some toff that I met recently made a good point... [don't quote me on figures - I dind't check them] he claims that company is worth 540m, divide by 2.7 billion shares gives 20p per share. THat equates to a 90% discount at the moment. Like most AIM listed companies, they are a complete gamble. If you are willing to accept losing half of the cash you put in, by all means go for it. You might be waiting a while before they budge though if the last few years are anything to go by.... high risk -> high reward and all that jazz...

dunkamania

I_Love_Tomatoes wrote: »

Some toff that I met recently made a good point... [don't quote me on figures - I dind't check them] he claims that company is worth 540m, divide by 2.7 billion shares gives 20p per share. THat equates to a 90% discount at the moment. Like most AIM listed companies, they are a complete gamble. If you are willing to accept losing half of the cash you put in, by all means go for it. You might be waiting a while before they budge though if the last few years are anything to go by.... high risk -> high reward and all that jazz...

Interesting math your using here....90% discount

Also whats a toff?

I_Love_Tomatoes

dunkamania wrote: »

Interesting math your using here....90% discount

Also whats a toff?

"toff" –noun British Informal.
a stylishly dressed, fashionable person, esp. one who is or wants to be considered a member of the upper class.

This guy definitely fell under the "wants to be considered a member" category
Full credit to him though because he sounded convincing enough. He has made quite a few quid too so I didn't question him.

Again, just my disclaimer in case anyone loses their shirt -- it wasn't my math above. I am merely quoting him.